Sustainability Report of
Harburg-Freudenberger
Maschinenbau GmbH
Site: Freudenberg, Germany
Report period: 2016
Page 1 of 32
Contents
Statement from the Board of Management 3
Organisation profile of Harburg-Freudenberger Maschinenbau GmbH 4
Labour practices and human rights 6
Fair business practices 15
Environment and climate 16
Sustainable procurement 29
Page 2 of 32
Statement from the Board of Management
Also in 2016, the HF MIXING GROUP commits to a sustainable business activity. In this
regard, we interpret the term sustainability very comprehensively. It relates to our Human
Resources policy, production methods and energy and raw material consumption. We also
extend this demand to our suppliers; we moreover also make it our job to meet the demand
of our customers of providing energy-efficient machines with low resource consumption.
We thus subject all our actions to international standards, e.g., to the 10 principles of the UN
Global Compact, the Luxembourg Declaration of the EU on the topic of employee health
promotion, DIN EN ISO 14001 regarding environmental management, and DIN EN ISO 50001
on energy management.
In the reporting period we succeeded in presenting our energy and resource consumption
transparently and in detail, and we developed and implemented important measures for
savings. Although value creation has increased substantially in our company, we have hereby
succeeded in maintaining the absolute resource consumption constant or even in reducing it.
We will consistently continue on this path in the future. As the report shows, other savings
potentials are also available, which we will use consistently.
This report was prepared on a voluntary basis.
In case of questions about the sustainability report and its contents, please contact Ms.
Nadine Massuard ([email protected])
Dr. Andreas Limper Mark Meulbroek
Management Management
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Organisation profile of Harburg-Freudenberger Maschinenbau GmbH Harburg-Freudenberger Maschinenbau GmbH (Freudenberg plant)
Asdorfer Straße 60
57258 Freudenberg Germany
Postcode 11 80
57251 Freudenberg Germany
Tel: +49 2734 491-0
Fax: +49 2734 491-150
Email: [email protected]
Internet: www.hf-mixinggroup.com
Board of Management:
Jens Beutelspacher, Dr. Andreas Limper, Mark Meulbroek, Günter Simon
Chairman of the Supervisory Board: Dr. Joachim Brenk
Commercial Registry: Court of First Instance Hamburg, Dept. B No. 64651
Registered office: Hamburg
VAT ID No. DE811151610, Tax No. 21 22 290 0900 3
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Locations
The place of business of Harburg-Freudenberger Maschinenbau GmbH [HF MIXING
GROUP] is in Hamburg/Germany; the HF MIXING GROUP has premises all over the world.
Main commercial and production sites:
• Harburg-Freudenberger Maschinenbau GmbH, Germany
• Farrel Corporation, USA
• Farrel Ltd., GB
• POMINI Rubber & Plastics srl, Italy
• HF Rubber Machinery, Inc., USA
• HF NaJUS, a.s., Slovakia
Global locations:
• Harburg-Freudenberger Machinery (China) Co., Ltd. • China
• HF France S.a.r.l. • France
• Farrel Sales Office Líbeznice • Czech Republic
• HF MIXING GROUP Sales Office Barcelona • Spain
• HF MIXING GROUP Services S.E.A. Sdn Bhd • Malaysia
• INDUS UTH HF MIXING SYSTEMS PVT LTD • India
• Farrel Asia Ltd. • Singapore
You will find sales partners as well as country and product responsibilities on the website
http://www.hf-mixinggroup.com/contact
Products HF MIXING GROUP develops and produces machines and accessories for the rubber and
plastics processing industry, with a high level of technical expertise. In particular, this includes
mixers for manufacturers of technical rubber products and the tyre industry. HF also builds
discharge units and special machines for these industrial sectors, as well as equipment for
mixing rooms – right up to complete automation systems. All over the world, these future-proof
products are used in the manufacture of tyre applications, sealing profiles, cables and friction
linings, as well as for thermoplastic elastomers and special plastic mixtures.
Information on the products can be found on the webpage:
http://www.hf-mixinggroup.com/products/
Page 5 of 32
Labour practices and human rights
A clear commitment to sustainable and responsible corporate governance
HF distinguishes itself for its high level of overall technical and procedural competence developed over 150 years, its corporate philosophy which focuses on long-term sustainability and its conscious close cooperation with clients and business partners. The result: common and lasting success. The central component of the company’s value system is sustainability; an expression of the forward-thinking actions of the group. One logical addition to and continuation of the company’s sustainability activities is the signing of the letter of commitment of the Global Compact initiative of the United Nations (UN) in early May 2015.
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The ten principles of the UN Global Compact initiative:
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 2: make sure that they are not complicit in human rights abuses. Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 4: the elimination of all forms of forced and compulsory labour; Principle 5: the effective abolition of child labour; and Principle 6: the elimination of discrimination in respect of employment and occupation. Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater environmental responsibility; and Principle 9: encourage the development and diffusion of environmentally friendly technologies. Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
www.unglobalcompact.org | www.globalcompact.de
HF integrates the ten principles of the UN Global Compact initiative in its daily activities. At the same time, the company commits to ensuring that its business partners also conduct their business activities in a manner consistent with the ten universally recognised principles in the areas of human rights, labour standards, protection of the environment and fight against corruption. You can read details on how HF achieves all this on the following pages.
Page 7 of 32
Human rights
HF safeguards employee rights and is against human rights violations. HF integrates people
with handicaps and socially disadvantaged people.
Right to protecting the private sphere
HF guarantees adherence to the right to self-determination of information in collaboration
with an external data protection officer and by regular audits in this area. HF relies on
employees and thus does not install any technologies for monitoring the private use of e-
mail and Internet.
Right to protecting the family
HF enables employees to find a balance between professional and private life by instituting
flexible working hours. Mothers and fathers can take up their work part-time after
parenthood, so that their children's care is guaranteed.
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Labour practices and employee compensation
HF is tied to labour contracts and offers flexible working hours to employees, special tariff
payments such as Christmas and holiday bonuses, and non-monetary perquisites in the
form of private laptops, petrol vouchers or e-bike leasing.
370
360
350
340
330
320
310
300
290
280
Number of employees
2014 2015 2016
Permanent employees Temporary employees
Anti-Discrimination / Social Security
HF is committed to the UN Global Compact. HF ensures pay equity through the tariff
framework agreement (ERA). Workplaces, and not employees, are classified into
corresponding tariff groups with ERA. The previously generated task description, regardless
of age, gender or actual qualification, is used when deploying or transferring employees.
The hourly wage for all employees is significantly above minimum wages in order to offer
HF employees appropriate living compensation.
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8
352
6
332
9
310
� Permanent employees � Temporary employees
Training
Sustainability is emphasised as a corporate value at HF. Special attention to training is thus
paid by staff management. The share of trainees in the overall number of HF employees
was just about 10 percent in 2016. HF is very keen to offer a long-term perspective to
trainees, which is why training is only done as per requirement. HF offers training
professions in mechatronics engineering, industrial mechanics, construction mechanics,
cutting machine operators and technical product designers in the technical and industrial
areas. Professions like industrial managers, specialists in warehouse logistics and specialist
IT personnel are offered in the commercial area.
Trainee/Dual Students 40
35
30
25
20
15
10
5
0
Reporting date 31.12.2014 Reporting date 31.12.2015 Reporting date 31.12.2016
HF focussed on other training professions in 2016 after the mechatronics engineering
training was restructured. The internal passage through departments of industrial
salespersons was adapted, in particular. Since all company areas are highly determined by
technology, the areas of production, technology and sales automation were integrated into
the process. This training now also includes HF-specific training areas besides the general
ones.
The training professions of industrial mechanics, cutting machine operators and construction
mechanics were in some parts extended.
Besides classical training, HF also offers dual study curricula in collaboration with the dual
universities of Baden-Württemberg (DHBW) besides traditional training.
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35 32
21
Industrial engineering and business studies and the process engineering specialisation in
the mechanical engineering curriculum.
Two HF students concluded their studies successfully in 2016: They are now taking up tasks
of responsibility at HF in the IT and auditing areas.
The company benefited substantially from the HF training days organised in June 2015 for
the deployments of the trainees, since nine of the eleven newly appointed trainees visited
the training days. HF was even able to benefit from the training days again in 2016, which
showed from the letters of application received for 2017.
In 2016, HF took part in the training fair organised by IHK, the “JOBS-SI”, the “Technology Day” and the “W&I Day” of the Siegen University.
A “get-to-know” afternoon was organised in June for young people who were supposed to
start their training with HF and for their parents or relatives, since it is important to HF that
even parents and other relatives of the trainees are able to get an insight into the
organisation. Everyone had the opportunity to get to know each other, the trainees and the
organisation better that afternoon. A presentation of the organisation was made after a round
of introductions, and then there was a factory tour, so that everyone could form an
impression about the forthcoming jobs.
HF offered two jobs in the industrial mechanics and mechatronics engineering professions
in 2017; both positions have already been filled successfully.
Employee retention
In order to safeguard human capital sustainably, it is important that HF retains employees
in the company over the long term. The employees are therefore offered various
development options and social services. There is an option to become active in sports in
the fitness centre run by the company, avail of physiotherapy services and lease e-bikes.
Besides these offers, a summer festival held using the principle of rotation is organised in
collaboration with all European locations, which gives the employees the occasion to be able
to visit the other locations once. A football tournament in which all locations establish a team
is traditionally organised. These teams then compete against each other.
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HF relies on flexible working hours to enable employees to have a stress-free balance of
their private commitments and jobs. All employees get a share in profits besides special
tariff payments.
Fluctuation
9
8
7 8
6
5 6
4 5 5 5
3 4 4
2
1 2 2
0
Employees below 30 Employees between ages 30-50 Employees over 50
2014 2015 2016
All these aspects are reflected in the low fluctuation rate; it was at just 4.26% in 2015 and
fell further to 4.01% in 2016. The fluctuation rate of male employees was 3.26% in 2015;
4.56% in 2016. The fluctuation rate of female employees was 4.35% in 2015; no female
employee left the organisation in 2016. The rate of new appointments rose from 9.76% in
2015 to 10.00% in 2016.
Personnel development
HF was recertified as per the standard DIN EN ISO 9001-2015 in 2016. The training
management system introduced in 2015 in the area of field service jobs could in 2016
already be used as the basis for the capacity planning system, which had been introduced
in 2015 as well. Data is still being collected currently with the help of data collection forms
and managers in other areas. The first focus is on the technical areas.
A training machine on which HF employees and customers can be trained in the areas of
mechanics, hydraulics, automation, repairs and technical innovations was purchased. The
last modifications are still being made currently for the machine to become entirely
operational in 2017.
Page 12 of 32
Health management
Healthy employees ensure a healthy organisation. A trainer exchange took place in 2016 in
the fitness studio STARK run by the company, in which even family members of employees,
besides the employees themselves, are given the opportunity to train. Physiotherapists are
now deployed on four of the five weekdays due to the increased demand for physiotherapy
care, and they even conduct sports classes, besides the treatments. An experienced fitness
trainer offers courses in various areas on one day in the week.
Health management was extended to the health and social hotline of the Südwestfalen
Deaconry in December 2015. HF employees and their relatives have the opportunity to use
the hotline in all questionnaires regarding topics like care, social matters and medicine
anonymously. This offer was availed of by many employees even in 2016.
Due to a change of the labour protection law, the Employer’s Liability and Insurance
Association demands from companies since 2013 to not only make traditional physical risk
assessments, but also to consider the topic of mental stress at the workplace. Therefore, at
the end of 2016, a survey was started specifically concerned with psychological stress. The
process is in cooperation with the safety-technical service of Occupational Medicine
Center Siegerland registered association. The survey is scheduled to be made and
evaluated in early 2017.
During regular corporate campaigns employees can choose for themselves whether they
wish to receive a part of their share in profits as a monthly petrol voucher or e-bike leasing.
The first campaign was launched in 2013; 129 employees decided to avail of the e-bike offer
in it. In 2015, 21 bicycles were handed out in addition to the 129. The leasing period is for
three years. The bicycle can then be bought by paying a discounted amount. The period of
the first campaign ended in 2016. Employees could then decide whether they wished to
lease another e-bike or receive their share in profits as a monthly petroleum voucher again.
25 employees decided to take another e-bike.
In principle, there is an overall prohibition against smoking in the entire building premises
and grounds and all rented and buildings in use, spaces and outdoor areas. The six areas
marked smoking zones are exceptions.
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HF wishes to prevent addictions among employees and support them in overcoming any such addictions. The company has got an employee trained to be an addiction counsellor for this reason. Besides strategies for dealing with the problem on an industrial scale, he has also obtained knowledge in the area of prevention strategies and successfully passed an internship in an addiction clinic.
HF does not support employees only in curing additions by notifying addiction clinics, rather it also offers them a perspective in the organisation subsequently.
Employer Branding
The demand for well-trained skilled workers has risen continuously in recent years. A good
order book position and restructuring in various areas required new appointments, even for
key positions which were difficult to fill. 36 new employees in particular were appointed in
the technical area in 2016.
New appointments (m/f)
40
35
30
25
20
15
10 18 17
5 12
0
2014 2015 2016
With the slogan “It’s all about the mixture – build a future at HF”, the company intensified the
collaboration with local schools and sports associations in 2016. As part of the collaboration
with the football association SV Fortuna Freudenberg-Büschergrund, an interview training
programme, among other things, was offered to the players. Even schools accepted the
offer of professional information afternoons and factory visits very well.
Page 14 of 32
5 2 5
13 14
17
New hires
� Employees below 30 � Employees between ages 30-50
� Employees over 50
In addition, HF remains committed to the “Luxembourg Declaration for Workplace Health Promotion in the European Union” that it has already signed in 2014, and which is meant to promote and maintain the health of employees.
Fair business practices
Anti-corruption
HF has developed a guideline in the matter of anti-corruption. In 2016, employees were
successfully trained in this area. In order to make the grade in this matter in the future as
well, dealing with our guidelines is regularly referred to in the context of departmental
meetings.
During their initiation phase, new employees are introduced to the topic in critical
organisational areas by their managers.
Page 15 of 32
Luxembourg Declaration for Workplace Health Promotion in the European Union
Environment and climate
Environmental management
Protection of environment and climate have high significance when we manufacture our
products. Besides cost-effectiveness, sparing use of resources and conservative handling
of environment-related issues are significant factors in HF's corporate actions.
Management of Harburg-Freudenberger Maschinenbau GmbH is responsible for protection
of the environment. This transfer of corporate responsibilities is guaranteed by the fact that
every manager is informed about the responsibility of complying with environmental
protection in the organisation.
Application and maintenance of the environment management system is the responsibility
of the officer appointed for environmental management by the company's management. This
officer advises the managers in the company when implementing legal and official
requirements and promotes employee motivation and training. He ensures that deadlines
for statutorily required measures are complied with and supports in testing and releasing
new raw materials and additives under environmental aspects before using them in
production. Training and continuing education of agents and managers helps keep their
knowledge of environmental education updated on a regular basis.
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Water
Water is supplied by the city of Freudenberg. Water from the local supply network is
consumed for cooling test facilities in HF’s Technical Center, in production for cooling down
components heated by steam and in the social facilities (kitchen, showers, toilets) of the
organisation.
More than half of the city's water consumed in recent years was used for cooling the test
facilities. The greatest efforts to reduce water consumption were thus made in this area.
Thus, water consumption in the Technical Center could be lowered by about 50% through
more responsible behaviour of the employees in this area and a lower number of tests
conducted. A project on water flow in the supply circuit is additionally being planned.
The city's water was also consumed in testing the pressure of water-conducting
components. The components brought to the test temperature with steam needed to be
cooled down with cold water so that it could be recirculated immediately if possible into
Page 17 of 32
the manufacturing process. After flowing through the hot components, the water is directly
drained into the canalisation.
By using a recooling tank, from which the cold water could now be used, cold water
consumption in this area could be reduced to virtually nothing. Some optimisation measures
(new recirculating pump, laying supply and drain pipelines, increasing pipe diameters) were
necessary to improve the cooling properties of the tank in such a way that trouble-free
production could be ensured.
Water consumption in the entire organisation could be reduced sustainably by more than
60% in the last 3 years with the measures mentioned here (Figure 1).
Figure 1: Water consumption during the period 2013 - 2016
Waste water was drained into the canalisation of the city of Freudenberg while complying
with the city's waste water thresholds. Waste water resulting from the process was not
accumulated.
Waste
Special emphasis was laid on waste management as part of HF's environment management
system. This was done by a detailed recording of all waste, regularly checking for
alternatives and exhausting all options for reducing the waste quantities and substituting
hazardous waste by non-hazardous alternatives.
Page 18 of 32
Water consumption 2012 - 2016
Wa
ter
con
sum
pti
on
in
m3
Waste quantities
Waste quantities accumulated in the entire organisation are listed in Figure 2 - separated
into hazardous and non-hazardous waste.
Drilling emulsions used to lubricate tools in mechanical processing are the primary sources
of hazardous waste. They make up 95% of all hazardous waste. The quantities were
reduced by 16% in comparison with the previous year.
Quantities of non-hazardous waste increased by 40%. This could be attributed to the good
order book position and the accompanying increase in utilisation in manufacturing, since a
higher occurrence of metallic waste essentially resulted in the significant increase. In
addition to this, a new service hall was commissioned. When moving from the old hall into
the new one, many unnecessary old components were scrapped.
Figure 2: Waste generation during the years 2013 – 2016
Page 19 of 32
Sustainability in waste management
One of our disposal partners made out a sustainability certificate in waste-related matters
for 2016 as part of our efforts to improve waste management. Waste flows disposed of by
our disposal partner were considered in this certificate. The calculation model for accounting
for primary raw materials, energy and greenhouse gas emissions by disposal and utilisation
of waste materials is methodically based on ecological accounting as per DIN EN ISO
14040. The model considers the below process steps:
• Recording
• Transport
• Pre-treatment
• Utilisation
Primary raw materials savings increased from 87 tons in 2015 to 155 tons in 2016. The
quantity of primary raw materials saved by recycling was considered for the waste streams
utilised for materials.
An overall energy savings of 752 MWh was possible for 2016. This represents an increase
of more than 100% compared to the previous year. The quantity of energy generated by
burning or fermentation was considered for the waste streams utilised for energy.
Savings of CO2 emissions was equivalent to 101 tons of CO2. All ventilation and exhaust
were considered for the saved greenhouse gas emissions.
Page 20 of 32
Sustainability Certificate 2016
Page 21 of 32
Projects for waste reduction
Normal disposable cleaning materials were used for cleaning our machines. Since these
rags are contaminated with substances containing oil, they needed to be disposed of as
hazardous waste. This procedure was implemented in a recycling process well known in the
market in 2016. The contaminated cleaning rags were picked up by a service provider,
properly cleaned and then returned to the organisation. The contaminants washed out were
minimised by downstream waste-water treatment and the residues remaining were correctly
disposed of. Provided the cleaning rags remain in the service circuit, they are not waste
pursuant to European Waste Legislation. The occurrence of contaminated cleaning rags
decreased by 40% by introducing this recycling process. HF protects the environment by
the reusable principle and contributes to saving resources and minimising waste with this
service system.
A preserving agent applied from aerosol cans was used for preserving metallic blank
components. The empty aerosol cans then needed to be disposed of as hazardous waste.
Until now, different preserving agents and application procedures were tested as
alternatives. No procedure could however be implemented practically; thus, this project is
being continued.
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HF Energy Management
In view of rising prices and globally dwindling resources, responsible handling of energy is
becoming increasingly more important. Growing energy demand with limited natural
resources poses the challenge of using energy as efficiently and sparingly as possible in an
eco-friendly manner. An Energy Management System is practised in the company as per
the standard DIN EN ISO 50001 applicable worldwide, in order to live up to this
responsibility.
Page 23 of 32
The energy processes in the organisation were analysed as part of the Energy Management
System (EnMS). Energy flows were recorded and evaluated so that savings potentials and
corresponding measures for energy savings could be introduced. Furthermore, awareness
was created for employees to deal sparingly with energy in the organisation.
HF documented a huge amount of energy awareness and thus supports the positive image
of the company by maintaining and further developing the Energy Management System.
Simultaneously, the competitive position in the global market was reinforced. The company
is considered to be a competent contact point for questions related to energy.
Sources of energy in the organisations are electricity, natural gas and diesel. Electricity is
required for operating machines and facilities, natural gas is almost exclusively needed for
heating the building and hot water supply and diesel is used to operate the vehicles
employed within and outside the factory. Below, you will find some more detailed
considerations about these three sources of energy as well as the measures for energy
reduction introduced and implemented by HF.
Power
Annual power consumption in the organisation rose continuously in the period 2009 - 2013
due to strong sales growth and the resultant higher production utilisation (Figure 3). The
peak was exceeded in 2013 and has remained about the same since, with an increasingly
higher utilisation. Energy-saving measures, which could contribute to a significant reduction
in energy, are still in the initial phase.
Page 24 of 32
Figure 3: Power consumption during the period 2009 - 2016
A distribution of power consumptions over individual consumers was not initially possible
since we lacked the technology to measure it. A mobile measuring device for energy
measurement in electrical systems was procured for this reason and a concept was
developed for continuously identifying power consumptions in the entire organisation. The
consumption measurements were intensified to such an extent that reliable measurement
values of all consumers could be recorded within one year. Thus, a more precise estimate
of annual consumptions was possible at individual systems or for summarised consumption
areas.
Stationary energy measurement could be retrofitted at few consumers (e.g. heating
furnaces) in the short term. Other consumers will also be equipped with energy measuring
points in the coming years.
Page 25 of 32
Power consumption 2009 - 2016
Wa
ter
con
sum
pti
on
in
kW
h
YEAR
Savings projects
As part of a bachelor’s thesis it was found out that significant energy savings were possible
in the area of compressed air technology. In the first stage, the formerly available system for
compressed air generation was to be exchanged for a new and more efficient working
system. In addition, using the waste heat resulting from compressing air for heating the
adjoining assembly room was planned. A technical specification for such a new system was
developed based on the available measurements in the old system, and corresponding
offers obtained. A new compressed air system was ordered at the end of the year.
Two electrically operated chamber furnaces were used in the organisation for pre-heating
components. An analysis within a bachelor's thesis showed that power consumption in these
installations could be reduced by up to 50% by optimising the working method. This was
implemented in collaboration with the employees working at the furnace and recently led to
savings of about 2% in annual power consumption.
Modern lighting technology presents not only a huge potential for saving energy, but also
helps in improving the quality of lighting. CO2 emission could thus be reduced in recent
years, while simultaneously increasing the visual comfort and well-being of employees,
through needs-oriented lighting. Estimates of the level of power consumed in the area of
lighting technology concluded that lighting was responsible for about 20% of the total power
consumed in the organisation. This was also an argument for reducing power consumption
by replacing old technology in this area. The hall’s lighting, where old mercury vapour lamps
(HQL lamps) were still being used, was replaced to start with. Both reduction of power
consumption and improvement in the visual comfort of employees were achieved by
replacing this outdated lighting technique with modern LED lighting. All old HQL lights were
replaced by LED lighting in the last 3 years.
Page 26 of 32
Natural gas
About 95% of the natural gas consumed is used to heat the building and to supply it with hot
water. Only a small percentage of the natural gas is used to heat components in production.
As a result, natural gas consumption (Figure 4) depends largely on the weather conditions
in the respective years and on operational utilisation in the organisation.
Figure 4: Natural gas consumption over the period 2009 - 2016
Knowledge of the consumption structure within the company is relevant for reducing natural
gas consumption. This consumption structure was however not known when the Energy
Management System was introduced. Neither individual measurements of gas consumption
nor information on gas distribution in the premises were available. The total consumption
was recorded using a main meter. A partition of the natural gas consumed by individual
consumers was thus only possible using a rough estimation.
In the first year after its introduction, the Energy Management System aimed to obtain insight
into the distribution of natural gas by individual consumers in the organisation. Suitable
measuring devices were selected and put to use first for this purpose. The reading of the
natural gas consumed was done monthly.
Page 27 of 32
Natural gas consumption 2009 - 2016
Na
tura
l g
as
con
sum
pti
on
in
kW
h
YEAR
By the end of 2016, 50 - 60% of the natural gas consumed could thus be allocated. Other
measurement points will follow in subsequent years. By the end of 2017, the target is to be
able to allocate at least 90% of the natural gas consumption to the corresponding users.
If the quantities consumed are known, a consumption analysis can follow as the next step.
Potential for reducing gas consumption can be worked on in this analysis. Provided they are
cost-effective, measures for reducing gas consumption can be initiated and implemented.
Savings in natural gas consumption can be achieved by using more efficient heating
technologies, better insulation of the building envelope, and by motivating employees to
conduct themselves more responsibly when dealing with energy. Moreover, further effects
can be identified, e.g., the use of waste heat for heating.
Ideas to reduce natural gas consumption were already highlighted (buildings, gates, heating
technologies, power/heat co-generation) as part of a bachelor's thesis. However, further
considerations are required, e.g., for using new heating technologies such as condensing-
boiler technology and / or possible measures for limiting waste heat over the building
envelope. The options envisaged herewith will be subject to financial assessment for
subsequent years.
Energy-efficient technologies for customers
HF does not only think how energy consumption can be reduced internally, rather it also
offers customers progressive technologies with which they can save energy when operating
their facilities. An example of this is energy-efficient temperature-controlled systems which
are offered to customers both in case of new facilities and when modernising existing ones.
These systems are automatically adapted to the respective cooling requirements of the
machines and perform their task with minimum energy consumption. Trials at production
facilities in the tyre industry have shown that these intelligent temperature-controlled
systems save more than 50% energy when compared to traditional systems.
Page 28 of 32
Sustainable procurement
HF continued its work at constantly and efficiently improving its sustainability aspects in the
area of purchase also in 2016. The focus here was on the subject of REACH (chemical
regulation) and conflict minerals, where there is great demonstrable concern in the world
market with respect to humane and environmentally responsible extraction resp. use of
these materials.
In order to comply with the information requirement of the so-called Substances of very high
concern (SVHC), HF wrote to the most important suppliers primarily concerned and
requested them to issue a statement on the subject of REACH. At the start of the year, in
addition, the employee responsible for purchase in the CSR area was thoroughly trained in
the seminar “Guaranteeing and documenting REACH compliance: The requirements for
2016” at the Herkert Academy. Moreover, an upgrade to the premium edition of the REACH
manual was concluded, which henceforth offers direct and quick access to all relevant news
and information as an online edition.
Business partners were also confronted with the topic of conflict minerals, the so-called 3TG
(tantalum, tin, tungsten and gold) minerals. The aim of the enquiry was and is to prove and
ascertain that these minerals were extracted under ecologically and socially responsible
conditions. The majority of these materials come from the regions of conflict in the Congo
Republic and adjoining countries. The 3TG mineral is often extracted there using work
methods and manufacturing processes unworthy of humans and detrimental to the
environment. The Conflict Minerals Reporting Template, for short CMRT, applies as basis
of evaluation and proof of conflict-free procurement of these minerals. This template was to
be filled out by suppliers and evaluated by the purchase department.
Both the evaluations made until now as concerns REACH compliance of suppliers and the
handling of the 3TG conflict minerals showed an entirely positive image. No HF supplier has
demonstrable deficits in these areas.
The documents received were systematically stored and maintained in purchase. The list
was also updated and monitored at regular intervals. In case of ambiguities, documents
required clarification, or, in cases where there was no feedback from the supplier, the
respective supplier was contacted to discuss the respective concern and to resolve it to the
mutual satisfaction of both parties.
Page 29 of 32
Likewise, supplier self-information on the topic of Corporate Social Responsibility was
conducted for the third consecutive year, and implemented as a fixed part of supplier
evaluation since 2015. A letter was addressed to suppliers who have recently been added,
and for whom no filled out questionnaire was yet available, in which they were requested to
fill out the supplier self-information form and return it.
The following conclusions can be drawn from this:
(In all, 144 questionnaires were answered and evaluated.)
The maximum score achievable in the various parts ranged from:
In summary, the following results were achieved on an average for the evaluated
questionnaires:
Part I: Part II: Part III: Part IV:
Avg. marks scored: 49,85 51,1 16,7 38,1
Avg.
percentage value:
55 % 73 % 56 % 76 %
The following weighting factors were considered once again to evaluate the overall result
of individual suppliers more fairly.
Large companies Mid-sized companies Small companies
Employees >= 250 Employees 50 -249 Employees <= 49
Factor x 1 Factor x 1.1 Factor x 1.2
Page 30 of 32
- Part I: Environment 90 marks
- Part II: Occupational safety and health 70 marks
- Part III: Energy management 30 marks
- Part IV: Operating and business practices 50 marks
This gives the following conclusion:
Evaluation of “Supplier self-assessment”
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Large
companies
Mid-sized
companies
Small
companies
Minimum 29% 20% 21%
Maximum 97% 100% 100%
Average: 78% 70% 62%
The distribution of company sizes was given as follows:
Large companies: 50
Mid-sized companies: 53
Small companies: 41
The result appears extremely positive, as already seen in previous years. Every HF supplier
is active over and above the minimum statutory requirements with respect to social and
ecological action concerns. HF continues to work on further developing suppliers and
business partners in the area of social responsibility. E.g., this is done by the annual
evaluation of all relevant suppliers, targeted discussions with business partners or general
assistance as concerns the CSR area.
Furthermore, a completely new concept was developed for supplier audits in 2016. These
audits should further extend and qualitatively enhance the management of HF's suppliers.
The objective is positive and continuous suppler development, which optimises the quality
and efficiency of processes and products also in considering the perspectives of
sustainability and the environment.
Page 31 of 32
Pe
rce
nta
ge
ach
iev
ed
Inherent part of the supplier audits is the already mentioned supplier self-assessment
regarding the topic Corporate Social Responsibility (CSR). This information has a fixed
weighting as concerns the concluding evaluation of suppliers.
HF in this regard reports and evaluates the organisational and technical performance of
suppliers. Any improvements or defects are documented in the audit log and then a
measures plan is developed along with the business partner.
Page 32 of 32
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